Barneys New York mulls bankruptcy

Luxury department store Barneys New York is considering a bankruptcy filing, Reuters reported, citing unidentified people familiar with the matter.

The retailer is working with Kirkland & Ellis LLP to prepare for a potential bankruptcy that could come in the coming weeks, Reuters cited one of the people as saying. Barneys has not yet made a final decision and is weighing other solutions.

“Our board and management are actively evaluating opportunities to strengthen our balance sheet and ensure the sustainable, long-term growth and success of our business,” a company spokesman said in an emailed statement.

The company continues to evolve on strategy and business model, as seen in the announcement of store openings in New Jersey, Miami Beach, Las Vegas and its plans in Boston, the statement said.

Earlier this year, the company sought to downsize its Madison avenue store in an effort to reduce the store’s $30 million annual rent cost, according to the New York Post. Barneys also opened started selling luxury cannabis products at its Beverly Hills outpost.

Crain’s New York Business is the trusted voice of the New York business community—connecting businesses across the five boroughs by providing analysis and opinion on how to navigate New York’s complex business and political landscape.